Bitcoin price today: $97,800
Bitcoin prices were hovering around $97,800 on Tuesday after falling nearly 4% on Monday. The recent decline in BTC has resulted in over $1.69 billion in liquidations, including $180 million in BTC alone. Reports highlight that Microsoft shareholders voted to add BTC to its balance sheet on Tuesday, which could be a surprise on the upside if approved.
Bitcoin (BTC) was hovering around $97,800 on Tuesday after dropping nearly 4% on Monday. Traders are considering a Microsoft (MSFT) shareholder vote scheduled for Tuesday to add BTC to its balance sheet, a move that could trigger a financial crisis if approved. More rally.
Monday's drop in BTC prices caused $1.69 billion in liquidations across the crypto market, affecting 562,801 traders, including $180 million in BTC alone. Despite the decline, strong demand from institutional investors continues, with more than $480 million flowing into the Bitcoin Spot Exchange Traded Fund (ETF).
Bitcoin is expected to experience increased volatility following Microsoft shareholder vote
Bitcoin prices were hovering around $97,800 on Tuesday after hitting an all-time high of $104,088 last week. The recent surge has drawn the attention of big companies such as Microsoft and Amazon to Bitcoin. Last week, MicroStrategy co-founder Michael Saylor presented Microsoft's board of directors with reasons why the tech giant should buy Bitcoin.
Microsoft shareholders will vote today to add BTC to their balance sheet. The approval could come as a surprise for Bitcoin, QCP analysts said, despite the company's board of directors recommending against it. “Adding to the conspiracy, Amazon shareholders are reportedly pushing for the adoption of Bitcoin as a reserve asset,” they said.
Bitcoin plummets to $94,150, $1.69 billion disappears from crypto market
Bitcoin price started the week on the downside, hitting a low of $94,150 on Monday. According to data from CoinGlass, this decline triggered a wave of liquidations across the crypto market, resulting in over 562,801 traders being liquidated and a total of over $1.69 billion, especially $180 million in BTC. The above amount has been cleared.
Liquidation heatmap chart. Source: Coin Glass
This selling pressure could be seen as a result of profit taking by BTC holders. Santiment's network realized profit and loss (NPL) metric suggests that holders are booking profits at the top. After spiking last Thursday, BTC's non-performing loan index spiked again on Monday, indicating that holders are selling at a sizable profit on average. If the non-performing loan index continues to soar, BTC price may fall in the short term.
Bitcoin network realized profit and loss chart. Source: Santiment
“The market is going through a healthy deleveraging phase, and funding rates in the contract market have come down significantly,” Ryan Lee, principal analyst at BitGet Research, said in an exclusive interview with FXStreet. .
“The release of US November consumer price index (CPI) data will be a key event this week as it will influence expectations about a possible rate cut in December. There is some risk aversion ahead of the CPI release. “We are also keeping an eye on Microsoft's audit of Bitcoin investment proposals, which is expected but could have a significant impact on Bitcoin's near-term price trajectory,” he said.
Lee expects Bitcoin prices to be in the range of $92,000 to $105,000 this week.
Institutional investors add more BTC
Holders booked profits and Bitcoin hit a low of $94,150 on Monday, while institutional investors added more. Bitcoin spot exchange-traded fund (ETF) data recorded $483.6 million in inflows on Monday, according to Coinglass. If inflows of this magnitude continue, demand for Bitcoin will increase, leading to a price recovery.
Bitcoin spot ETF net inflow graph. Source: Coin Glass
Additionally, during the same period, MicroStrategy announced that it acquired 21,550 BTC worth $2.1 billion at an average price of $98,783 per Bitcoin. The company currently holds 423,650 BTC, acquired for $25.6 billion at an average price of $60,324 per Bitcoin.
MicroStrategy acquired 21,550 BTC for approximately $2.1 billion at approximately $98,783 each #bitcoin And it achieved a BTC yield of 43.2% QTD and 68.7% YTD. As of December 8, 2024, we have 423,650 people $BTC It was acquired for about $25.6 billion at about $60,324 per Bitcoin. $MSTR https://t.co/8r7bFqMFof
— Michael Saylor ⚡️ (@saylor) December 9, 2024
Bitcoin price prediction: RSI indicates weakness in bull market
Bitcoin price fell 3.79% to a low of $94,150 on Monday. As of this writing on Tuesday, it has recovered slightly and is trading around $97,800.
However, traders should be cautious as the relative strength index on the daily chart is showing signs of weakness. The recent upward trend in Bitcoin price since mid-November reflects the decline in RSI levels over the same period, indicating that bullish momentum is weakening. Furthermore, if the RSI closes each day below the neutral level of 50, it generally indicates that bearish momentum is gaining momentum.
If BTC continues its decline and closes below the $90,000 support level, losses could widen towards the next support level at $85,000.
BTC/USDT daily chart
However, if BTC continues its recovery and closes above $104,088, the rally could widen towards an all-time high of $119,510. This level coincides with the 141.4% Fibonacci extension from the November 4 low of $66,835 to Thursday's all-time high of $104,088.
Frequently asked questions about Bitcoin, altcoins, and stablecoins
Bitcoin is the largest cryptocurrency by market capitalization and is a virtual currency designed to function as money. This form of payment is not controlled by any particular person, group, or entity and eliminates the need for third parties to participate during financial transactions.
An altcoin is any cryptocurrency other than Bitcoin, but some consider Ethereum to be a non-altcoin because it is these two cryptocurrencies that forks occur. If this is true, Litecoin would be the first altcoin to fork from the Bitcoin protocol and thus be an “improved” version of it.
A stablecoin is a cryptocurrency that is designed to have a stable price, and its value is backed by the reserves of the asset it represents. To achieve this, the value of one stablecoin is pegged to a commodity or financial instrument, such as the US dollar (USD), and its supply is regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on/off ramp for investors who wish to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value, as cryptocurrencies are generally volatile.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the market capitalization of all cryptocurrencies combined. This clearly shows the interest in Bitcoin among investors. BTC's dominance typically occurs around bull markets, where investors turn to relatively stable, high-market-cap cryptocurrencies like Bitcoin. Decreasing BTC dominance usually means investors are moving their capital and profits to altcoins in search of higher returns, which usually causes an explosive rally in altcoins.
